CADENCE WEALTH PARTNERS
March 27, 2025
Portfolio Transition Analysis
Confidential — Prepared for Client Review

Tax Impact: 90/10 → 100/0 Allocation Transition

Transitioning from a 90% equity / 10% bond model to a 100% equity model in your taxable account

⚠️ Important: All positions in your current portfolio are short-term (held less than one year). Any gains realized in this transition will be taxed at ordinary income rates — not the preferential long-term capital gains rate of 0–20%.
Current Portfolio Value
$255,019
Taxable account
Total Cost Basis
$206,161
What you paid
Total Embedded Gain
+$48,858
Unrealized — not all triggered
Holding Period
Short-Term
All positions <1 year

Positions Being Sold

Tax Event
Unique tickers liquidated192
Total market value sold$36,405
Short-term gains realized+$2,962
Short-term losses realized−$348
Net short-term gain / loss+$2,614

Positions Being Retained

No Tax Event
Positions kept (model overlap)228
Embedded gains staying put+$47,383
Embedded losses staying put−$1,138
New positions to purchase37 tickers

Based on a net short-term gain of $2,614, select your federal tax bracket to estimate your total tax cost for this transition.

Federal Tax
~$836
32% ordinary income
NC State Tax
~$124
4.75% NC rate
Total Estimated Tax
~$960
0.38% of portfolio

* State tax estimate based on North Carolina's flat income tax rate of 4.75%. Federal estimates are for illustration only. Please consult your tax professional for your specific situation.

Gains Realized
Losses Harvested
Bond Allocation Removed
New Positions Added
Ticker / SecurityMarket ValueNet Gain
VTEB — Vanguard Muni Bond ETF (eliminated)$12,552+$321
AGG — iShares Core US Aggregate (eliminated)$3,367+$64
SCHP — Schwab TIPS ETF (eliminated)$839+$14
USHY — iShares Broad USD High Yield (eliminated)$603+$13
VWOB — Vanguard EM Govt Bond (eliminated)$305+$12
GLW — Corning$226+$158
WDC — Western Digital$172+$151
SNDK — SanDisk$138+$131
VLO — Valero Energy$204+$117
WBD — Warner Bros Discovery$148+$106
GM — General Motors$238+$100
CMI — Cummins$162+$77
NEM — Newmont$145+$67
DELL — Dell Technologies$88+$47
KEYS — Keysight Technologies$86+$46
CAH — Cardinal Health$107+$40
TRGP — Targa Resources$112+$41
HAL — Halliburton$71+$35
CTVA — Corteva$114+$33
ROK — Rockwell Automation$91+$33
DAL — Delta Air Lines$81+$33
DVN — Devon Energy$67+$32
OXY — Occidental Petroleum$71+$32
ADM — Archer-Daniels-Midland$80+$31
EBAY — eBay$107+$31
IDXX — IDEXX Laboratories$91+$30
ALB — Albemarle$41+$29
MCHP — Microchip Technology$69+$28
All other gain positions (100+)~$4,200+$1,073
Total gains realized$24,575+$2,962
Ticker / SecurityMarket ValueNet Loss
BNDX — Vanguard Intl Bond ETF (eliminated)$5,651−$143
HUBS — HubSpot$284−$47
TYL — Tyler Technologies$384−$32
VRSK — Verisk Analytics$184−$21
IAGG — iShares Intl Aggregate (eliminated)$1,401−$14
BND — Vanguard Total Bond Market (eliminated)$771−$11
INVH — Invitation Homes$262−$9
MUB — iShares National Muni Bond (eliminated)$171−$3
JNK — SPDR High Yield Bond (eliminated)$140−$2
Other loss positions~$3,000−$66
Total losses harvested$12,248−$348
ETFDescriptionMarket ValueG / L
VTEBVanguard Muni Bond$12,552+$321
BNDXVanguard Intl Bond$5,651−$143
AGGiShares Core US Aggregate$3,367+$64
IAGGiShares Intl Aggregate$1,401−$14
SCHPSchwab TIPS ETF$839+$14
BNDVanguard Total Bond Market$771−$11
USHYiShares Broad USD High Yield$603+$13
VWOBVanguard EM Govt Bond$305+$12
SPIPSPDR Portfolio TIPS$186−$1
MUBiShares National Muni Bond$171−$3
JNKSPDR Barclays High Yield$140−$2
Total bond allocation liquidated$25,986+$251 net

37 new equity positions being added to your portfolio. No immediate tax impact — each establishes a new cost basis at today's purchase price.

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What This Means for You

Only $2,614 in net gains are triggered — a fraction of your $48,858 in total embedded gains.

The 228 retained positions carrying $47,383 in embedded gains are untouched and continue growing tax-deferred.

The estimated all-in tax cost is less than 0.4% of your portfolio value — a modest one-time cost for a meaningful allocation shift.

The $348 in harvested losses offsets a portion of gains, reducing your net taxable amount.

37 new equity positions are added with fresh cost basis — no day-one tax exposure.

Because all positions are short-term today, waiting longer will not lower your tax rate unless held past the 1-year mark.